SUPERSEDED — prior version (Guide as of Bulletin 2026-11, published August 12, 2026) — Freddie Mac Single-Family Seller/Servicer Guide 4502.5 — Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value for Community Land Trust Mortgages
SUPERSEDED — this is the PRIOR text of Freddie Mac Guide Section 4502.5 (Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value for Community Land Trust Mortgages), dated 05/07/25, as published in the Guide as of Bulletin 2026-11 (August 12, 2026). Freddie Mac changed this section: the Guide as of Bulletin 2026-13 (October 7, 2026) carries a revised text (Bulletin 2026-13 (October 7, 2026)). Retained because a loan or exam period governed by the earlier text needs the version in force at the time.
Superseded — retained for reference. The operative requirements have moved to the current rule (see the description above).
Verbatim regulatory text
Verbatim provisions from SUPERSEDED — prior version (Guide as of Bulletin 2026-11, published August 12, 2026) — Freddie Mac Single-Family Seller/Servicer Guide 4502.5 — Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value for Community Land Trust Mortgages — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
[SUPERSEDED] Freddie Mac Single-Family Seller/Servicer Guide 4502.5 — Maximum loan-to-value (LTV)/total LTV
(TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value for Community Land Trust Mortgages (05/07/25) This section contains requirements related to: ■ Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) HTLTV ratios ■ Value (a) Maximum LTV/TLTV/HTLTV ratios The LTV, TLTV and HTLTV ratios are based upon the appraised value of the leasehold interest, without the resale and other restrictions included in the Community Land Trust Ground Lease. Note: See Section 4203.1(b) for maximum LTV/TLTV/HTLTV ratios for purchase and “no cash-out” refinance Mortgages. The maximum LTV/TLTV/HTLTV ratio for cash-out refinance Mortgages is 65%. (b) Value For both purchase and refinance transactions, “value” is the appraised value of the Mortgaged Premises on the Note Date. The appraised value must be determined in accordance with Section 4502.6. The LTV ratio is obtained by dividing the First Lien Mortgage amount by the appraised value as illustrated below: LTV ratio calculation Example Amount Appraised value $300,000 Purchase price $225,000 Subsidy amount $75,000 First Lien Mortgage amount $225,000 LTV ratio 75% Minimum required Borrower contribution for Down Payment* $0 *Minimum required Borrower contribution for Down Payment is determined by the product selected for Mortgages with an LTV of greater than 80%. See Section 5501.3(k). The purchase price excludes the subsidy amount that was provided to acquire the property. For this reason, the purchase price may not be a reliable indicator of appraised value since it reflects the subsidy amount. The LTV ratio is obtained by dividing the First Lien Mortgage amount by the “value” as described above.
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Source of record: https://claudeforcompliance.com/regs/fhlmc-4502-5-superseded-2026-10/
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